Brazil’s government introduced a provisional measure in June to raise gambling tax, potentially taking the rate to 18% of gross gaming revenue. BetMGM’s Eduardo Ludmer said operators would need to revise forecasts, while ANJL and IBJR criticised the proposal; the measure follows efforts to address a BRL20bn fiscal shortfall.
A higher tax rate could change licensed operators’ forecasts and costs in Brazil.
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A Brazilian government bill, PL 5.076/2025, proposes raising the special contribution on betting gross gaming revenue from 12% to 24%, according to the article. It also reports that federal tax revenue from betting totalled R$6.85bn from January to September 2025, up 17,962% on the same period in 2024, citing a Receita Federal report.
Brazil's Receita Federal defined gross gaming revenue as the PIS/Pasep and Cofins tax base for fixed-odds betting companies, according to two consultation rulings published in the official gazette on 28 July. The guidance says amounts collected for others, including statutory allocations to public funds and beneficiary entities, are excluded from taxable gross revenue and applies to retail and online betting.
Brazil’s betting GGR tax rose from 12% to 13% in 2026 under a measure approved by Congress and sanctioned by the executive in late 2025. The rate is scheduled to increase to 14% in 2027 and 15% in 2028; industry representatives warn that higher taxes could encourage betting activity to move to illegal platforms.
Brazil’s government issued rules for the Contribuição Social sobre Bens e Serviços and the Imposto sobre Bens e Serviços, which together are expected to carry a rate of about 26.5%. The framework taxes betting and lottery GGR after prizes and specified mandatory allocations are deducted, while the GGR levy is scheduled to rise from 12% to 15% in 2028.
Brazilian betting CEO Marco Tulio Oliveira said rising taxes could undermine efforts to reduce illegal betting. Brazil’s GGR tax rate has risen from 12% to 13%, and could reach 15% next year; Oliveira estimated that about 50% of the market remains unregulated. He also said operators generated approximately BRL 2.5 billion in tax revenue during the first two months of 2026.